BY REPRESENTATIVES Kreutz, McPherson, Musgrave, Owen, Paschall, T. Williams, and Young;
also SENATORS Wattenberg, Tebedo, and Weddig.
CONCERNING EXEMPTION OF SHORTTERM LIMITED DURATION
HEALTH INSURANCE POLICIES FROM THE DEFINITION OF A "HEALTH
BENEFIT PLAN" SUBJECT TO REGULATION BY THE COMMISSIONER OF
INSURANCE.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 1016102
(21) (b), Colorado Revised Statutes, is amended to read:
1016102. Definitions.
As used in this article, unless the context otherwise requires:
(21) (b) "Health benefit plan"
does not include: Accident only; credit; dental; vision; medicare
supplement; benefits for longterm care, home health care,
communitybased care, or any combination thereof; disability
income insurance; liability insurance including general liability
insurance and automobile liability insurance; coverage for onsite
medical clinics; coverage issued as a supplement to liability
insurance, workers' compensation or similar insurance; or automobile
medical payment insurance. The term also excludes specified disease,
hospital confinement indemnity, or limited benefit health insurance
if such types of coverage do not provide coordination of benefits
and are provided under separate polices or certificates. SOLELY
WITH RESPECT TO THE PROVISIONS OF SECTION 1016118
(1) (b) CONCERNING CREDITABLE COVERAGE FOR INDIVIDUAL POLICIES,
THE TERM EXCLUDES INDIVIDUAL SHORTTERM LIMITED DURATION
HEALTH INSURANCE POLICIES ISSUED AFTER JANUARY 1, 1999. THIS
MEANS SUCH POLICIES DO NOT HAVE TO RECOGNIZE CREDITABLE COVERAGE.
FOR THE PURPOSE OF THIS PARAGRAPH (b), "SHORTTERM
LIMITED DURATION HEALTH INSURANCE POLICY" MEANS A NONRENEWABLE
INDIVIDUAL HEALTH BENEFIT PLAN WITH A SPECIFIED DURATION OF NOT
MORE THAN SIX MONTHS THAT MEETS THE FOLLOWING REQUIREMENTS:
(I) THE SHORTTERM LIMITED DURATION
HEALTH INSURANCE POLICY IS ISSUED ONLY TO INDIVIDUALS WHO HAVE
NOT HAD MORE THAN ONE SUCH POLICY PROVIDING THE SAME OR SIMILAR
NONRENEWABLE COVERAGE FROM ANY CARRIER WITHIN THE PAST TWELVE
MONTHS AND SO STATES IN ALL MARKETING MATERIALS, APPLICATION FORMS,
AND POLICY FORMS. AN APPLICANT SHALL BE DEEMED TO BE ELIGIBLE
FOR COVERAGE IF A SHORTTERM CARRIER INCLUDES IN ITS APPLICATION
FORM THE FOLLOWING: "HAVE YOU OR ANY OTHER PERSON TO BE
INSURED BEEN COVERED UNDER TWO OR MORE NONRENEWABLE SHORTTERM
POLICIES DURING THE PAST TWELVE MONTHS? IF "YES", THEN
THIS POLICY CANNOT BE ISSUED. YOU MUST WAIT SIX MONTHS FROM THE
DATE OF YOUR LAST SUCH POLICY TO APPLY FOR A SHORTTERM POLICY."
(II) THE SHORTTERM LIMITED DURATION
HEALTH INSURANCE POLICY CONTAINS THE FOLLOWING DISCLOSURE IN TENPOINT
OR LARGER BOLDFACE TYPE IN ALL MARKETING MATERIALS, APPLICATION
FORMS, AND POLICY FORMS: "THIS POLICY DOES NOT PROVIDE PORTABILITY
OF PRIOR COVERAGE. AS A RESULT, ANY INJURY, SICKNESS, OR PREGNANCY
FOR WHICH YOU HAVE INCURRED CHARGES, RECEIVED MEDICAL TREATMENT,
CONSULTED A HEALTH CARE PROFESSIONAL, OR TAKEN PRESCRIPTION DRUGS
WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE OF THIS POLICY WILL
NOT BE COVERED UNDER THIS POLICY."
SECTION 2. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Patricia K. Dicks
CHIEF CLERK OF THE HOUSE ASSISTANT SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO